Section 900E — Corporation Tax Act 2009: Special rule: section 900B case

Special rule: section 900B case 900E 1 This section applies in respect of a restricted asset of a company if it is a restricted asset by reason of section 900B.

2 If the company was the first company to acquire the asset on or after 1 July 2020, the relevant Chapters of this Part have effect as if the company acquired the asset at no cost.

3 If the company was not the first company to acquire the asset on or after 1 July 2020, the relevant Chapters of this Part have effect as if the company acquired the asset for the adjusted amount.

4 The adjusted amount is— A − B where— A is the amount of consideration— for which the company actually acquired the asset, or if different, for which it would (ignoring this section) be treated for the purposes of the Taxes Acts as having acquired the asset, and B is the market value of the asset on the date it was first acquired by a company on or after 1 July 2020.

5 Where B is greater than A the adjusted amount is nil.

6 In this section— “ market value ”, in relation to an asset, means the price the asset might reasonably be expected to fetch on a sale in the open market, and “ the relevant Chapters of this Part ” means— Chapter 3 (debits in respect of intangible fixed assets), Chapter 15 (adjustments on change of accounting policy), and Chapter 5 (calculation of tax written-down value) in so far as it has effect for the purposes of Chapters 3 and 15.